3 audit firms have been removed from the Bangladesh Securities and Exchange Commission (BSEC) panel for not being registered with the Financial Reporting Council (FRC).

According to BSEC in a circular on Sunday (September 29), the three audit firms excluded are: A Hawk and Company, Fames and R and SK Barua and Company Chartered Accountants.

An internal letter from the BSEC’s Accounting and Auditing Policy Department said that in December last year, the FRC published the list of audit firms it listed. Later, in February, it wrote to the commission and said that the companies which are not listed by the FRC, should be excluded from the panel.

BSEC does not accept financial statements signed by any auditor not on their panel. The elimination of three audit firms reduced the BSEC’s panel membership from 48 to 45.

According to FRC sources, 15-20 audit firms failed to register with FRC last year. On the other hand, the Institute of Chartered Accountants has taken various disciplinary measures against about 45 chartered accountants.

According to BSEC sources, the three audit firms excluded from the panel will not be able to audit any issuer company or listed securities. However, they will be able to complete the audit and assurance activities they were carrying out before they were dropped.